In a recent case of Delhi HC an impugned order was disposed of, for demanding a payment of Rs,29,31,73,600/ tax liability along with interest from the taxpayer even after discharge of liabilities and cancellation of registration.
The petitioner Shree Pawan Traders through legal heir of proprietor Mahair Prasad Khandal filed a petition impugning a Show Cause Notice ( SCN ) issued under Section 73 of the Central Goods and Services Tax Act, 2017 ( CGST Act ) and the Delhi Goods and Services Tax Act, 2017 ( DGST Act ), which was issued against the petitioner’s husband.
Get a Copy of Supreme Court Judgements on GST Click here
The adjudicating authority had issued the impugned SCN under Section 73 of the CGST/ DGST Act with respect to the tax period from July 2017 to March 2018 proposing a demand aggregating to an amount of Rs. 29,31,73,600-/inclusive of interest.
The petitioner represented by Advocate Pranay Jain and Karan Singh, in her reply to the adjudicating authority stated that her husband ( late Mahabir Prasad Khandal ) had expired on 04.05.2021. She forwarded the copy of his death certificate and informed that since then the GST registration has been canceled.
Get a Copy of Supreme Court Judgements on GST Click here
Additionally she also filed a detailed reply to the allegations made by the respondent, Union of India & ANR, in the impugned SCN, in which she claimed that her deceased husband had fully discharged the tax liability of Rs. 5,38,282-/ and carried forward the balance of Rs. 21,276-/ in the electronic credit ledger. She also stated that the calculation of tax for the period 2017 was erroneous as her husband was maintaining separate accounts for taxable and non – taxable.
She also submitted that her husband was entitled to avail Input Tax Credit ( ITC ) with respect to supplies from Sree Krishna Enterprises, from the plain reading of the impugned order it is clear that the adjudicating authority did not consider petitioner’s contentions.
Get a Copy of Supreme Court Judgements on GST Click here
The division bench of Delhi High Court comprising Justice Vibhu Bakhru and Justice Sachin Datta observed that the impugned order was unreasonable and therefore was set aside.
The petition and pending applications were disposed of and the matter was remanded to the adjudicating authority for fresh consideration.
Get a Copy of Supreme Court Judgements on GST Click here
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
